Delays in CTP insurer payments can disrupt treatment and rehabilitation for injured road users in NSW. Under the Motor Accident Injuries Act 2017 (MAIA), insurers must pay statutory benefits promptly, and late payments may incur interest under the NSW Civil and Administrative Tribunal (NCAT) rules. This article explains how payment delays affect access to medical care, rehabilitation planning, and compliance with SIRA guidelines in the Illawarra and South Coast regions.
Legal Obligations for CTP Insurers
- NSW law requires CTP insurers to pay statutory benefits within 14 days of receiving a valid claim form, as outlined in SIRA’s
- Making a motor accident claim* guide. If payments are delayed beyond this period, insurers may be liable for interest under the
- NSW Civil Procedure Act 2009* (s 126), which applies to all civil claims, including CTP disputes. SIRA confirms that payment delays can hinder injured claimants’ ability to secure timely treatment, as outlined in their
- What you can claim* resource.
Consequences of Delayed Payments
When CTP insurers fail to meet payment deadlines, injured road users may face practical challenges. For example, a claimant requiring immediate physiotherapy or specialist care may struggle to access treatment if funds are not released promptly. Delays can also disrupt rehabilitation planning, as medical professionals rely on timely payments to coordinate care. SIRA’s Motor accident claims page notes that insurers must ensure payment timelines align with the injured person’s medical needs to avoid unnecessary hardship.
SIRA Guidelines on Payment Timelines
SIRA’s guidelines clarify that CTP insurers must prioritize payment of statutory benefits, including weekly income payments and treatment and care benefits, to support injured claimants’ recovery. While the MAIA does not explicitly mention interest for delayed payments, NCAT case law and the NSW Civil Procedure Act establish that insurers may be liable for interest if they fail to meet statutory deadlines. This aligns with SIRA’s emphasis on timely resolution of claims to protect injured road users’ access to care.
Practical Steps for Claimants
Injured claimants should document all communication with insurers, including dates of claim submission, payment requests, and any delays. Keeping records of medical appointments, treatment plans, and financial needs can help demonstrate the impact of payment delays. If an insurer refuses to pay or disputes liability, claimants may need to escalate the matter to NCAT or seek legal advice to enforce their rights under the MAIA.
When to Seek Legal Advice
If an insurer’s delay in payment causes financial strain or prevents access to essential treatment, claimants should consult a legal professional. While SIRA provides free information, individual claims depend on specific circumstances, including the date of the accident, injury severity, and insurer compliance with payment deadlines. Legal advice can help claimants understand their options under NSW law and ensure their rights are protected.
Every claim depends on its own facts. To request contact about your circumstances, complete the quick, no obligation enquiry form.